Notification No. 05/2018 – Central Tax Explained

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Notification No. 05/2018 – Central Tax: Reduction of late fee in case of delayed filing of FORM GSTR-5

GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

G.S.R……(E):- In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby waives the amount of late fee payable by any registered person for failure to furnish the return in FORM GSTR- 5 by the due date under section 47 of the said Act, which is in excess of an amount of twenty- five rupees for every day during which such failure continues:

Provided that where the total amount of central tax payable in the said return is nil, the amount of late fee payable by such registered person for failure to furnish the said return by the due date under section 47 of the said Act shall stand waived to the extent which is in excess of an amount of ten rupees for every day during which such failure continues.

(Dr. Sree Parvathy S.L.)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 05/2018 – Central Tax

Q1: What is Notification No. 05/2018 – Central Tax?

Answer:
It is a GST notification that reduced the late fee for delayed filing of GSTR-5 to ₹25 per day and ₹10 per day for nil returns. 05

Q2: Who needs to file GSTR-5?

Answer:
Non-resident taxable persons who supply goods or services in India must file GSTR-5.

Q3: Under which section was this notification issued?

Answer:
It was issued under Section 128 of the CGST Act, which allows the government to waive or reduce late fees. 05

Q4: What is the late fee after this notification?

Answer:
₹25 per day for normal returns
₹10 per day for nil returns 05

Q5: What is the connection between Section 47 and this notification?

Answer:
Section 47 imposes late fees for delayed returns.
Notification 05/2018 reduced the late fee using powers under Section 128.

Q6: What is the due date for GSTR-5?

Answer:
GSTR-5 is generally due:
On the 20th of the following month, or
Within 7 days after the registration period ends (whichever is earlier).

Q7: Is GSTR-5 required even for nil turnover?

Answer:
Yes.
Even if there is no turnover, a nil GSTR-5 must be filed.

Q8: Can GSTR-5 be revised after filing?

Answer:
No.
Any corrections must be made in subsequent returns.

Q9: What happens if GSTR-5 is not filed?

Answer:
Consequences may include:
Accumulation of late fees
Notices from GST authorities
Difficulty in closing registration

Q10: Does this notification apply to GSTR-1 or GSTR-3B?

Answer:
No.
It applies only to GSTR-5.

Q11: Is this late fee reduction still applicable today?

Answer:
No.
This was a specific relief measure for the early GST period.

Q12: What is the difference between GSTR-5 and GSTR-5A?

Answer:
GSTR-5: Filed by non-resident taxable persons
GSTR-5A: Filed by OIDAR service providers

Q13: How can non-resident taxpayers avoid late fees?

Answer:
They should:
Monitor due dates
Maintain proper invoices
File returns on time
You can ensure compliance through:
https://finodha.in/gst-compliance/

Q14: What type of transactions are reported in GSTR-5?

Answer:
Transactions such as:
Sales made in India
Purchases in India
Tax liability and payment details

Q15: Where can businesses get professional help for GST filings?

Answer:
You can get expert support from Finodha for:
GST Registration: https://finodha.in/online-gst-registration/
GST Return Filing: https://finodha.in/gst-return-filing/
GST Compliance: https://finodha.in/gst-compliance/

Conclusion

Notification No. 05/2018 – Central Tax provided crucial relief to non-resident taxpayers by significantly reducing late fees for delayed GSTR-5 filings. By capping the fee at ₹25 per day and ₹10 for nil returns, the government ensured smoother GST compliance during the early implementation phase.